Potlatch Corp. on Thursday reported second quarter earnings of $22.3 million, down from $24 million in the first quarter, and $35.5 million the same time a year ago.

Vice President and CFO Eric Cremers says the Wood Products segment showed a $200,000 loss during the 2nd quarter, substantially better than the $10 million loss last quarter, but still far from the $6.5 million profit in 2007’s 2nd quarter.

CFO Eric Cremers comments

The Resource segment experienced later than normal spring breakup conditions in Idaho, resulting in lower harvest levels, bringing in $12.2 million. The Pulp and Paperboard segment fell from $11 million in earnings in the first quarter to $6.2 million over the past three months, as the company experienced significant inflationary pressures on costs.

The Consumer Products segment operated well during the quarter, with profits of $6.9 million, more than doubling the first quarter’s earnings.

Cremers continues

The Real Estate segment had strong results in the second quarter, bringing in over $11 million, which was partially the result of selling more than 5,100 acres at an average price of some $1,500 an acre.

The company estimates that higher energy costs negatively impacted 2008 year-to-date operating earnings by $12 million versus 2007. The 2008 2nd quarter numbers also include costs of $1.8 million associated with the evaluation of a tax-free spin-off of the pulp-based businesses.